The Tokyo District Court approved a plan for the civil rehabilitation of the bankrupt Bitcoin exchange Mt.Gox. The trustee Nobuaki Kobayashi announced this.
The trustee submitted a proposal to reimburse users in December 2020. In January, details of the plan became known. And later in February, the court approved it for a subsequent vote.
Thus, it started on May 31 and ended on October 20. About 83% of exchange users supported the offer of compensation. According to Kobayashi, on the same day, the court issued an order confirming the plan.
Becoming “final and binding”
“Further, on November 16, 2021, the rehabilitation plan became final and binding,” the trustee wrote. He will disclose the terms and amounts of payments, as well as the details of the procedure later.
Mt.Gox declared bankruptcy in 2014. The process of reimbursing creditors was launched in 2018. Since that time, many in the community have expressed fears that about 150,000 Bitcoin (~$9 billion at the current exchange rate), which will potentially be transferred to exchange users, will enter the market and cause its collapse.
Furthermore, the final approval of the rehabilitation plan by the court led to the resumption of discussion of this topic.
Bitcoin is likely to fall
“When more than 150,000 BTC soon hit the market, Bitcoin is likely to fall by more than 80-90%. No amount of Tether will be able to stop the massacre at Mt.Gox,” wrote the author of the popular Twitter account Mr. Whale.
According to him, the exchange’s clients are being returned the Bitcoins they owned at prices of $100-$1000. On November 16, digital gold failed at the level of $59,000. However, at the time of writing, it held above $60,000.
Earlier, the Fortress Investment Group investment company offered Mt.Gox creditors to redeem their claims for 80% of the cost.